Owner Employee Compensation is Not Free Cash Flow

Sack Elmaleh Michael
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Sack Elmaleh Michael: Columbia Union College

Journal of Business Valuation and Economic Loss Analysis, 2008, vol. 3, issue 1, 4

Abstract: Owner employees require reasonable compensation for services provided to their companies. It is a major conceptual error to treat such compensation as free cash flow in the calculation of economic value.

Keywords: owner employee compensation; free cash flow (search for similar items in EconPapers)
Date: 2008
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DOI: 10.2202/1932-9156.1043

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